Hermès // 2021 Universal Registration Document



Leather goods workshops present limited sources of wastewater discharge thanks to primarily manual production processes that do not require water. The only wastewater discharge concerns water used for washrooms, which does not require on-site treatment and in most cases is directed to public wastewater collection networks. Textile/ +7.3% increase in waste in 2021 (decrease of 4.7% compared to 2019) The complex evolution of the waste market and the saturation of local outlets (landfills and incinerators in the region where it is located) require careful management. Through monthly meetings involving the sites as well as the service provider, the sector ensures that recycling and recovery solutions are systematically favoured, and that each new stream is validated. In 2021, just 3% of the sector’s waste was processed by elimination. All dye waste, which accounted for 47% of the sector’s total waste (all streams included), was used to manufacture alternative fuel. The summary of non-hazardous waste was also positive: 44% was sorted and recycled by the service provider and 54% recovered as energy. Following an in-depth feasibility study, the SIEGL site succeeded in modifying the printing process for the double-sided scarf to eliminate the adhesive plastic film previously attached to each of the scarf rolls before printing. In July 2021, the first articles were successfully produced without using this plastic film. In October, nearly 20% of double-sided scarves were printed in this way. In January 2022, this process will cover all printing, which will avoid the scrapping of 100,000 metres of adhesive film. Real estate Since 2019, scrupulous management of demolition or dismantling waste from a site due to be renovated and construction site waste management have been systematically implemented for all construction projects in France and worldwide. Hermès is committed to going beyond current regulations to reduce the use of hazardous substances. Accordingly, the House’s internal requirements, for its own operations and for supplier specifications, sometimes impose stricter limits. Tanneries The quality of effluent discharges is central to sites’ environmental concerns. Each tannery is equipped with an effluent treatment station and verifies that its industrial emissions comply with the applicable standards. Regulatory inspection reports are submitted to the local authorities on a regular basis. As a reminder, the tanneries are solely located in France (5) and Italy (1), and their stringent regulations are subject to frequent controls. EFFECTIVE SOLUTIONS FOR WASTE MANAGEMENT

Tanneries / +3.4% increase in waste production in 2021, (down 21.9% compared to 2019) The raw material used in the tanneries is the entire hide, referred to as “raw” hide, a putrescible organic product. Tanning involves processing the hide into a durable product, a finished leather, using successive operations that eliminate matter and generate effluent. The reduction of tannery waste naturally starts with the improvement of the quality of the raw hides. Tanning generates unavoidable waste, associated with trimming the edges of the hides (“trimming”) or preparing the internal surface of the hide (“fleshing”). Processing hides in successive baths also generates effluents, which are processed at site treatment plants and result in the production of sludge. The management of this sludge is of course highly regulated in all the geographical areas where the Group operates (European Union) and complies with the regulations in force. The tanneries are constantly seeking new reuse channels for this waste and are active participants in the think tanks that are brought together at Hermès to discuss leather waste, and in the work done by the Centre Technique du Cuir (CTC), the French expertise centre on leather. In 2021, overall waste production in the division increased by 3.4% compared to 2020, a year that was marked by a decline in activity caused by the temporary closure of sites, as a result of the Covid-19 pandemic. OIW represents more than 90% of waste generated by tanneries, with sludge from on-site effluent treatment alone accounting for more than half of this OIW. In general, the production of hazardous and non-hazardous industrial waste in exotic leather, calfskin and goat hide tanneries is relatively constant from one year to the next, even if the continuous improvement of effluent treatment systems can lead to an increase in waste production, particularly through the extraction of sludge. 100% of the waste produced is evacuated to approved channels, and the at-source sorting of waste streams is in place at the French and Italian sites. On-site waste storage is optimised to prevent any pollution risk (sheltered storage areas, retention basins, etc.) and regular awareness-raising initiatives focusing on sorting and the layout of work areas are carried out among employees. The proportion of recycled and energy-recovered waste out of the total tonnage generated by the Leather Goods division was 86% in 2021. The division’s Leather Goods activity generates little HIW. The share of these in the total annual tonnage in 2021 was low, representing only 5%. Leather scraps, parts not used in the “cutting” activity of production units, are sold to specialised channels, sorted and reused. These by-products from activity are not included as “waste” in this report. The division also takes part, in the context of the recovery of production waste, in working groups on the reuse, recycling and recovery of its waste within Hermès, as well as in the work carried out by the Centre technique du cuir (CTC – Leather Technical Centre) on this subject. Leather / +37.3% increase in waste in 2021 (increase of 32.5% compared to 2019)


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